Federal Employment Tax

Businesses with employees must withhold federal income tax, Medicare tax, and Social Security tax from each employee’s wages.  Payments are made by the Electronic Federal Tax Payment System or by using form 8109-B Federal Tax Deposit Coupons.  These payments are due monthly or semiweekly.  Businesses report this tax on form 941 Employer’s Quarterly Federal Tax Return.  Employers with a tax liability of $1,000 or less can pay annually on January 31 by filling form 944 Employer’s Annual Federal Tax Return.